QB 18/10 Income tax – state schools and donation tax credits and QB 18/11 Income tax – state integrated schools and donation tax credits
These two "Questions we've been asked" (QWBAs) explain when a parent's payment to a school will be a gift, so that the school can issue a donation tax receipt to the parent. A payment will be a gift when it is voluntary, does good for the school, and the parent obtains no material benefit or advantage in return for making the payment.The QWBAs refer to Circular 2018/01 Payments by parents of students in schools (Ministry of Education, 2018).
Public Ruling BR Pub 18/06: Goods and services tax - payments made by parents to state and state integrated schools
GST is not chargeable on payments made by parents to the board of trustees of a state or state integrated school where the payments are made to assist the school with the cost of delivering education services which the student has a statutory entitlement to receive free of charge. GST is chargeable on payments made for supplies of other goods or services that are not integral to the supply of education to which the student has a statutory entitlement, where that supply is conditional on the payment being made
This Ruling is a reissue of BR Pub 14/06 which expired on 20 June 2018. It is substantially the same as BR Pub 14/06 but some parts have been rewritten to improve readability, and legislative changes have been included. A new example (Example 5) has been added. The Ruling refers to Circular 2018/01 Payments by parents of students in schools (Ministry of Education, 2018).
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